Cost of Living in Luxembourg
Apartments advertised for rent in Luxembourg asked a median of €1,700 a month in 2025, or €33.30 per m². The median apartment on offer was 56 m². Eurostat puts consumer prices at 148.0 in 2025, where the EU average is 100. Inflation was 2.7% in October 2026, and public transport is free.
What does it cost to live in Luxembourg? This page uses official figures only: advertised rents from the Observatoire de l'Habitat, rent changes and consumer prices from STATEC, price levels, housing cost burden and the household budget survey from Eurostat, and transport fares from mobiliteit.lu. Where no official national figure exists, we leave the item out.
Rent and housing costs in Luxembourg
Price levels in Luxembourg against the EU average, 2023 to 2025
Rent in Luxembourg
Apartments advertised for rent in Luxembourg in 2025 asked a median of €1,700 a month, or €33.30 per m², according to the Observatoire de l'Habitat, the housing observatory of the Ministry of Housing. The average was €1,800 a month. The median surface of apartments on offer was 56 m². The figures cover 9,470 apartment listings. They are asking rents for new leases, not what all tenants pay.
Luxembourg City is more expensive than the national median, at €39.10 per m², against €32.20 in Esch-sur-Alzette. Across the border, the median is €12.00 per m² in Nord Lorrain in France and €10.00 in Wallonia. Advertised apartment rents were 5.8% higher in the second quarter of 2026 than a year earlier. Rents in existing leases, measured by STATEC, rose 1.3%.
Eurostat puts the share of people whose housing costs exceed 40% of disposable income at 8.1% in 2025, against 7.6% in the EU. Among people below the poverty threshold, it is 30.4%. Buying is also costly: existing apartments sold for an average of €7,712 per m² in the 12 months to June 2026.
Consumer prices and inflation
Consumer prices were 2.7% higher in October 2026 than a year earlier, down from 2.9% in September, according to STATEC. Energy rose 13.2% on the year, led by heating oil (+64.8%) and diesel (+45.1%), while gas and electricity prices were unchanged. Services rose 2.8% and food 1.5%. STATEC forecasts average inflation of 2.3% in 2026 and 2.5% in 2027.
The harmonized index that Eurostat uses to compare countries showed 5.2% in September 2026, above the euro area's 3.8%. It also covers spending by non-residents in Luxembourg, including fuel, so it reacts more to fuel prices: transport rose 17.4%. Rents in that index rose 1.4% and household energy fell 1.0%.
Eurostat puts the price level for household consumption in Luxembourg at 148.0 in 2025, where the EU average is 100. That means prices about 48% above the EU average. Housing and energy are furthest above average, at 181.9. Food stands at 122.4 and restaurants and hotels at 118.9, while transport, at 99.6, is close to the EU average.
What households spend
In the latest household budget survey, for 2020, housing and energy took 35.1% of household spending in Luxembourg, against 32.9% in the EU. That share includes 21.1% of imputed rent, the rental value of homes their owners live in, and 7.1% of rent paid by tenants. Transport took 16.3%, well above the EU's 10.9%, and food only 9.4%, against 16.9%. Eurostat publishes the breakdown as follows:
| Spending category | Luxembourg, share of spending | EU average |
|---|---|---|
| Housing, water, electricity, gas and other fuels | 35.1% | 32.9% |
| Transport | 16.3% | 10.9% |
| Food and non-alcoholic beverages | 9.4% | 16.9% |
| Miscellaneous goods and services (including insurance and personal care) | 9.3% | 8.9% |
| Furnishings and household equipment | 6.5% | 4.8% |
| Restaurants and hotels | 6.5% | 4.9% |
| Recreation and culture | 5.8% | 6.7% |
| Clothing and footwear | 4.4% | 4.0% |
| Health | 2.6% | 3.7% |
| Communications | 2.3% | 3.1% |
| Alcoholic beverages and tobacco | 1.4% | 2.4% |
| Education | 0.4% | 0.9% |
Transport
Public transport has been free across Luxembourg since 1 March 2020: trams, buses and second-class trains cost nothing, with no ticket needed. First class on CFL trains is charged: €3 for 2 hours, €60 a month or €500 a year. Cross-border trips need a ticket; a RegioZone monthly pass costs €40 and an annual pass €360.
Energy and local costs
Gas and electricity prices did not change in October 2026, and household energy in the harmonized index was 1.0% cheaper in September than a year earlier. Heating oil, by contrast, cost 64.8% more than in October 2025. Local taxes and fees are set by each municipality, so there is no single national figure.
What it means for pay and hiring
Luxembourg's social minimum wage is €2,771.33 gross a month from 1 June 2026 for unqualified workers, and €3,325.59 for qualified workers. The median advertised apartment rent of €1,700 equals 61.3% of the unqualified minimum wage. All wages rise automatically by 2.5% when prices have risen enough to trigger an index step; STATEC expects the next one in the second quarter of 2027. Pay offers need to reflect both housing costs and indexation. See minimum wage in Luxembourg and public holidays in Luxembourg.
Employers pay 12.57% to 15.00% on top of gross pay in social security, as our guide to hiring in Luxembourg explains. Hiring in Luxembourg? We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299. See how placement works or browse remote jobs in Luxembourg.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
Is Luxembourg expensive compared with the rest of the EU?
Yes. Eurostat puts the Luxembourg price level for household consumption at 148.0 in 2025, where the EU average is 100. Housing and energy stand at 181.9, food at 122.4 and restaurants and hotels at 118.9. Transport, at 99.6, is close to the EU average.
What is the average rent in Luxembourg?
Apartments advertised for rent in 2025 asked a median of €1,700 a month and an average of €1,800, according to the Observatoire de l'Habitat. The median was €33.30 per m² nationally and €39.10 in Luxembourg City.
What is the inflation rate in Luxembourg?
Consumer prices were 2.7% higher in October 2026 than a year earlier, according to STATEC, after 2.9% in September. STATEC forecasts 2.3% for 2026 and 2.5% for 2027.
Is public transport free in Luxembourg?
Yes. Since 1 March 2020, trams, buses and second-class trains are free across Luxembourg. First class costs €60 a month or €500 a year, and cross-border trips need a ticket.
How much of their budget do Luxembourg households spend on housing?
35.1% in the 2020 household budget survey, against 32.9% in the EU. That includes the imputed rent of owner-occupied homes. In 2025, 8.1% of people lived in households spending more than 40% of their disposable income on housing.
Sources
- Observatoire de l'Habitat, Loyers annoncés en 2025 dans l'aire fonctionnelle du Luxembourg. Checked 5 Nov 2026.
- Ministry of Housing and Spatial Planning and STATEC, Le Logement en chiffres n°20, September 2026. Checked 5 Nov 2026.
- STATEC, L'inflation annuelle recule à 2.7% en octobre. Checked 5 Nov 2026.
- STATEC, Prévisions d'inflation, 4 November 2026. Checked 5 Nov 2026.
- Eurostat, Price level indices, prc_ppp_ind_1. Checked 5 Nov 2026.
- Eurostat, HICP annual rates by category, prc_hicp_minr. Checked 5 Nov 2026.
- Eurostat, Housing cost overburden rate, ilc_lvho07a. Checked 5 Nov 2026.
- Eurostat, Household budget survey 2020, structure of consumption, hbs_str_t211. Checked 5 Nov 2026.
- mobiliteit.lu, Fares: free public transport and first class tickets. Checked 5 Nov 2026.
